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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OIL
Russia’s 2024 budget shortfall could be narrower than projected, according to Bloomberg, citing a government report, driven by elevated oil prices.
- Geopolitical tensions are keeping prices near the $90/b mark for Dated Brent.
- Bloomberg economics estimates a federal budget deficit of 0.5%-0.7% of GDP in 2024, compared to 2% in 2023.
- If Brent prices remain at current levels for the remainder of 2024 and the rouble holds at around 92-93 per USD, this could narrow the budget shortfall to 0.3% of GDP.
- Russia will continue to face some pressure to continue trading oil at above the G7 price cap for crude – currently set at $60/b.
- Initial enforcement was lacklustre, but has recently been ramped up, with the US imposing sanctions on providers who transport cargoes exceeding the price cap.
- Hence, the continued ability to utilise the “dark fleet” of tankers may prove important in capitalising on elevated crude prices.
Source: Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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